Eagle Energy Inc. assumed operatorship of the Dixonville properties in which it has 50% working interest. Its assumption of operatorship is through the joint agreement it has with Spyglass Resources Corp. for the Montney-area properties in Dixonville, Alberta.

Eagle’s operatorship became effective June 1.

Richard Clark, Eagle Energy’s CEO and president, said that by the end of 2016 the company expects to add between 200 barrels of oil equivalent per day (boe/d) and 250 boe/d of overall production to the area.

Spyglass was placed in receivership in November, Clark said. He said that the Dixonville properties are a key legacy asset. Eagle Energy will bring on behind pipe production after infrastructure is upgraded, and will begin a field study evaluating the waterflood and artificial lift.

Eagle Energy also said that its borrowing base was set to CA$70 million in the semiannual borrowing base redetermination and credit agreement amendment on May 31. At the prior redetermination finalized on Oct. 7, 2015, the borrowing base was set at $US80 million.

At the end of the first quarter of 2016, Eagle's bank debt, net of positive working capital, was $CA66.7 million. Eagle Energy accelerated a portion of its capital program into the first quarter of 2016, successfully executing the two-well Salt Flat drilling program.

Eagle Energy said that during subsequent quarters of 2016, it expects funds flow from operations to exceed capex.

Eagle Energy Inc. is based in Calgary, Alberta.